Alphabet, Cloud Revenue Up 22% but Misses Forecast... After-Hours Down 9%

Alphabet, Google's parent company, exceeded market expectations with its third-quarter earnings this year.

On the 24th (local time), Alphabet announced that its revenue for the third quarter reached $76.693 billion (103.3397 trillion KRW), an 11% increase compared to the previous year. Net income was $19.689 billion, and earnings per share were $1.55 (2,088 KRW), surpassing the market expectation of $1.45. Operating income was $21.343 billion.

By segment, total advertising revenue, including YouTube, rose 9% from $54.48 billion in the same period last year to $59.65 billion. Search advertising revenue generated $44 billion, while YouTube advertising revenue reached $7.9 billion.

The cloud business recorded $8.41 billion in revenue, a 22% increase from the previous quarter. Operating profit also turned positive in the first quarter and continued to post profits for three consecutive quarters, earning $266 million in the third quarter.

However, the cloud segment's revenue fell short of market expectations ($8.61 billion), resulting in disappointing performance and causing the stock price to decline in after-hours trading. Alphabet's stock is trading at $129.74 in after-hours, down 9.07% from the closing price of $138.81.

Jesse Cohen, chief analyst at Investing.com, stated, "Investors expressed disappointment, fearing that Alphabet may fall behind competitors due to the weak performance in the cloud sector."

This content was produced with the assistance of AI translation services.